FactSet Research Systems Inc.
FactSet Research Systems Inc. Fundamental Analysis
FactSet Research Systems Inc. (FDS) shows strong financial fundamentals with a PE ratio of 14.30, profit margin of 24.48%, and ROE of 27.22%. The company generates $2.4B in annual revenue with moderate year-over-year growth of 5.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze FDS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentFDS demonstrates superior asset utilization.
Valuation Score
ExcellentFDS trades at attractive valuation levels.
Growth Score
ExcellentFDS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentFDS maintains a strong and stable balance sheet.
Profitability Score
ExcellentFDS achieves industry-leading margins.
Key Financial Metrics
Is FDS Expensive or Cheap?
P/E Ratio
FDS trades at 14.30 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FDS's PEG of -10.82 indicates potential undervaluation.
Price to Book
The market values FactSet Research Systems Inc. at 3.95 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.72 times EBITDA. This is generally considered low.
How Well Does FDS Make Money?
Net Profit Margin
For every $100 in sales, FactSet Research Systems Inc. keeps $24.48 as profit after all expenses.
Operating Margin
Core operations generate 31.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.22 in profit for every $100 of shareholder equity.
ROA
FactSet Research Systems Inc. generates $13.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
FactSet Research Systems Inc. generates strong operating cash flow of $809.57M, reflecting robust business health.
Free Cash Flow
FactSet Research Systems Inc. generates strong free cash flow of $691.98M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $18.49 in free cash annually.
FCF Yield
FDS converts 8.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-10.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.73
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How FDS Stacks Against Its Sector Peers
| Metric | FDS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.30 | 18.66 | Better (Cheaper) |
| ROE | 27.22% | 806.00% | Weak |
| Net Margin | 24.48% | -451.00% (disorted) | Strong |
| Debt/Equity | 0.73 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 1.40 | 662.02 | Neutral |
| ROA | 13.93% | -24409.00% (disorted) | Strong |
FDS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews FactSet Research Systems Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.44%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
60.14%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
43.62%
Industry Style: Value, Dividend, Cyclical
High Growth